BILL NUMBER: SB 1644	CHAPTERED  09/12/00

	CHAPTER   403
	FILED WITH SECRETARY OF STATE   SEPTEMBER 12, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 11, 2000
	PASSED THE SENATE   AUGUST 30, 2000
	PASSED THE ASSEMBLY   AUGUST 28, 2000
	AMENDED IN ASSEMBLY   AUGUST 24, 2000
	AMENDED IN ASSEMBLY   JULY 6, 2000
	AMENDED IN ASSEMBLY   JUNE 15, 2000

INTRODUCED BY   Senators Ortiz and Poochigian
   (Principal coauthors:  Assembly Members Rod Pacheco and Steinberg)

   (Coauthors:  Senators Alpert, Bowen, Brulte, Burton, Chesbro,
Costa, Escutia, Figueroa, Hughes, Karnette, McPherson, Murray, O'
Connell, Perata, Polanco, Rainey, Schiff, Sher, Solis, Soto, and
Vasconcellos)
   (Coauthors:  Assembly Members Alquist, Aroner, Battin, Cardenas,
Cardoza, Cedillo, Corbett, Correa, Cunneen, Davis, Ducheny, Dutra,
Gallegos, Havice, Hertzberg, Honda, Jackson, Lempert, Longville,
Lowenthal, Machado, Mazzoni, Nakano, Reyes, Romero, Scott, Shelley,
Strom-Martin, Thomson, Torlakson, Villaraigosa, Washington, Wiggins,
Wildman,  Cunneen, Leach, Pescetti, Robert Pacheco, and Zettel)

                        FEBRUARY 22, 2000

   An act to amend Section 66021.2 of, to add Sections 69514.5,
69547.5, and 69547.9 to, to add Chapter 1.7 (commencing with Section
69430) to Part 42 of, and to repeal Article 3 (commencing with
Section 69530) of Chapter 2 of Part 42 of, the Education Code,
relating to student financial aid, making an appropriation therefor,
and declaring the urgency thereof, to take effect immediately.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1644,  Ortiz.  Student financial aid:
Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program.
   (1) Existing law establishes the Cal Grant Program as a state
educational opportunity grant program for postsecondary study.
Existing law, known as the Donahoe Higher Education Act, sets forth,
among other things, the missions and functions of California's public
and independent segments of higher education and their respective
institutions of higher education.  The provisions of that act apply
to the University of California only to the extent that the Regents
of the University of California, by appropriate resolution, act to
make a provision applicable.  Among other things, the act sets forth
the long-term policy with respect to the Cal Grant program.  Under
this policy, the number of first-year Cal Grant awards is equal to at
least 1/4 of the number of graduating high school seniors.  The
policy also requires that its implementation maintain a balance
between the state's policy goals of ensuring access to and selection
of an institution of higher education for students with financial
need.
   This bill would enact the Ortiz-Pacheco-Poochigian-Vasconcellos
Cal Grant Program, which would, among other things, set forth the
long-term policy that first-year Cal Grant awards be granted to all
applicants with demonstrated financial need and eligible grade point
averages, and who meet other prescribed criteria.
   Under the existing Cal Grant Program, Cal Grant A awards are used
only for tuition and student fees in instructional programs of not
less than 2 academic years, Cal Grant B awards are used only for
tuition, student fees, and subsistence costs in an instructional
program of not less than one academic year, Cal Grant C awards are
used only for occupational or technical training, and Cal Grant T
awards are used only for tuition and student fees for a maximum of
one academic year for full-time attendance in an accredited teacher
training program.  Existing law requires that the maximum award in
each category be determined in the annual Budget Act.  Existing law
requires Cal Grant B awards to be used for subsistence costs.
   This bill would provide that, commencing on January 1, 2001, the
existing Cal Grant Program is applicable only to students who have
received an award under the program on or before December 31, 2000.
The bill would repeal the existing Cal Grant Program as of January 1,
2010.
   The bill would, commencing with the 2001-02 academic year,
establish Cal Grant A Entitlement Awards, Cal Grant B Entitlement
Awards, Competitive Cal Grant A and B Awards, California Community
College Transfer Entitlement Awards, Cal Grant C Awards, and Cal
Grant T Awards under the Ortiz-Pacheco-Poochigian-Vasconcellos Cal
Grant Program.  The bill would specify the eligibility criteria for
each category of award.  The bill would guarantee funding under the
entitlement awards to all students achieving and maintaining
eligibility for those awards.
   The bill would require the Student Aid Commission to annually
report to the Legislature and the Governor on prescribed aspects of
the program.
   (3) Existing law establishes the Student Aid Commission as the
primary state agency for the administration of state-authorized
student financial aid programs available to students attending all
segments of postsecondary education.
   This bill would establish the Community College Student Financial
Aid Outreach Program, which would be developed and administered by
the commission, in consultation with the office of Chancellor of the
California Community Colleges, for the purpose of providing financial
aid training to high school and community college counselors and
advisors who work with students planning to attend or who are
attending a community college, as prescribed.
   (4) Existing law establishes in the State Treasury the Special
Fund for Economic Uncertainties, a continuously appropriated fund.
Existing law authorizes the Controller to transfer amounts as needed
to meet the cash needs of the General Fund, and requires the
Controller to return moneys so transferred as soon as there are
sufficient moneys in the General Fund.  Existing law authorizes the
Director of Finance to allocate funds from the Special Fund for
Economic Uncertainties for disaster relief by notifying the Joint
Legislative Budget Committee.
   This bill would authorize the Director of Finance to authorize the
augmentation, from the Special Fund for Economic Uncertainties, of
the amount appropriated annually for the purposes of making grants
under the Cal Grant Program.  By authorizing the expenditure of money
in a continuously appropriated fund for a new purpose, the bill
would make an appropriation.
   (5) This bill would appropriate $1,500,000 from the General Fund
to the commission for expenditure, without regard to fiscal year, for
support costs related to the administration of the bill, as
prescribed.
   (6) This bill would declare that it is to take effect immediately
as an urgency statute.
   Appropriation:  yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  This act shall be known, and may be cited, as the
Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Act.
  SEC. 2.  (a) The Legislature finds and declares all of the
following:
   (1) The California 1960 Master Plan for Higher Education
established a structure for the organization of a world-class
postsecondary system of education that utilizes the strength and
capacity of the California community colleges in the training of
lower division students in vocational programs and courses for
transfer to higher institutions, undergraduate programs in the
liberal arts, sciences, and teacher preparation at the California
State University, partnerships with the independent colleges, and the
undergraduate and professional schools, graduate training, and
research at the University of California.
   (2) A cornerstone of the Master Plan was a promise that the state
would ensure all qualified students access to a quality higher
education.  The drafters of the Master Plan reaffirmed a long
established principle that the state colleges and the University of
California be tuition free to all residents of the state.  Over the
past four decades this policy evolved into a promise of affordability
for all qualified students using a balance of fees and financial aid
for low-income students.
   (3) California reflects the ethnic and cultural diversity of today'
s world.  Evidence of this change is most pronounced within our
public elementary and secondary education system.  As California
enters the 21st century, there is no single group that represents a
majority of elementary and secondary enrollment.  These changing
demographics present great challenges and great opportunities.
California must invest in higher education and in the future of its
young people so they can acquire skills and knowledge to compete and
lead the nation and the world.
   (4) The Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Act makes
access and affordability a guarantee to every qualified student.  It
reaffirms the basic tenets of the 1960 Master Plan for Higher
Education by guaranteeing a Cal Grant award to every student who is
financially and academically eligible to receive one.  Students with
financial need and academic merit will no longer wonder whether they
will be one of the relatively few students selected to receive a Cal
Grant award each year.
   (5) At a time when California is insisting on improved performance
and accountability from all students in the public elementary and
secondary school system, it is important to follow through on the
state's commitment to the capable graduates of high schools so they
can pursue a quality higher education, especially when their families
have limited financial means.
   (6) The Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Act
removes poverty as a barrier to access to the opportunities of a
higher education for all academically successful students and
provides an opportunity to enroll and complete a higher education and
take on the challenges presented by the Information Age and the
ever-changing, technology-driven economy of the 21st century.
   (7) The Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Act takes
an historic step in putting California at the forefront of the nation
in providing access to all academically qualified students with
financial need who are pursuing the dream of a higher education.
With the enactment of this measure California will keep faith with
its decades-long promise to make higher education available and
affordable to every qualified student who deserves a chance to aim
high and succeed.
   (b) It is the intent of the Legislature, in enacting this act, to
sunset the Cal Grant Program established pursuant to Article 3
(commencing with Section 69530) of Chapter 2 of Part 42 of the
Education Code and to establish the
Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Act, commencing with
the 2001-02 academic year.
  SEC. 3.  Section 66021.2 of the Education Code is amended to read:

   66021.2.  Consistent with the state's historic commitment to
provide educational opportunity by ensuring both student access to
and selection of an institution of higher education for students with
financial need, the long-term policy of the
Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program established
pursuant to Chapter 1.7 (commencing with Section 69430) of Part 42
shall be as follows:
   (a) Commencing with the 2001-02 academic year and every year
thereafter, an applicant for a Cal Grant A or B award shall receive
an award that is not in excess of the financial need amount
determined by the Student Aid Commission pursuant to Section 69432.9
if he or she complies with all of the following requirements:
   (1) Demonstrates financial need under the criteria adopted
pursuant to Section 69432.9.
   (2) Attains a grade point average, as defined in Section 69432.7,
meeting the requirements of Chapter 1.7 (commencing with Section
69430) of Part 42.
   (3) Complies with each of the eligibility criteria applicable to
the type of Cal Grant award for which he or she is applying.
   (b) (1) The maximum Cal Grant A award for a student attending the
University of California or the California State University shall
equal the mandatory systemwide fees in each of those segments.
   (2) The maximum Cal Grant B award for a student to which this
subdivision is applicable shall equal the mandatory systemwide fees
in the segment attended by the student, except for community college
students who receive waivers from the Board of Governors of the
California Community Colleges, plus the access award calculated as
specified in Article 3 (commencing with Section 69435) of Chapter 1.7
of Part 42, except that in the first year of enrollment in a
qualifying institution, the maximum award shall be only for the
amount of the access award.
   (c) The maximum Cal Grant awards for students attending nonpublic
institutions shall be as follows:
   (1) The maximum Cal Grant A award shall equal the tuition award
level established in the Budget Act of 2000, or the amount as
adjusted in subsequent annual budget acts.
   (2) The maximum Cal Grant B award shall equal the amount of the
tuition award as established in the Budget Act of 2000, or the amount
as adjusted in subsequent annual budget acts, plus the amount of the
access costs specified in Section 69435, except that, in the first
year of enrollment in a qualifying institution, the maximum award
shall be only for the amount of the access award.
   (d) Commencing with the 2000-01 academic year, and each academic
year thereafter, the Cal Grant C award shall be utilized only for
occupational or technical training.
   (e) Commencing with the 2000-01 academic year, and each academic
year thereafter, the Cal Grant T award shall be used only for one
academic year of full-time attendance in a program of professional
preparation that has been approved by the California Commission on
Teacher Credentialing.
   (f) An institution of higher education in this state that
participates in the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant
Program shall not reduce its level of per capita need-based
institutional financial aid to undergraduate students, excluding
loans, below the total level awarded in the 2000-01 academic year.
   (g) The implementation of the policy set forth in this section
shall maintain a balance between the state's policy goals of ensuring
student access to and selection of an institution of higher
education for students with financial need and academic merit.
   (h) It is the policy of the State of California that the
Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program supplement
the federal Pell Grant program.
   (i) An award under the Ortiz-Pacheco-Poochigian-Vasconcellos Cal
Grant Program shall not guarantee admission to an institution of
higher education or admission to a specific campus or program.
  SEC. 4.  Chapter 1.7 (commencing with Section 69430) is added to
Part 42 of the Education Code, to read:

      CHAPTER 1.7.  ORTIZ-PACHECO-POOCHIGIAN-VASCONCELLOS CAL GRANT
PROGRAM

      Article 1.  General Provisions

   69430.  This chapter shall be known, and may be cited, as the
Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program.
   69431.  There is hereby established the
Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program, which may
also be referred to as the Cal Grant Program.
   69432.  (a) Cal Grant Program awards shall be known as "Cal Grant
A Entitlement Awards," "Cal Grant B Entitlement Awards,"  "California
Community College Transfer Entitlement Awards," "Competitive Cal
Grant A and B Awards," "Cal Grant C Awards," and "Cal Grant T Awards."

   (b) Maximum award amounts for students at independent institutions
and for Cal Grant C and T awards shall be identified in the annual
Budget Act.  Maximum award amounts for Cal Grant A and B awards for
students attending public institutions shall be referenced in the
annual Budget Act.
   69432.5.  The Budget required by the California Constitution to be
submitted by the Governor at each Regular Session of the Legislature
shall take into consideration the amount of federal grant funds for
student financial aid.
   69432.7.  As used in this chapter, the following terms have the
following meanings:
   (a) An "academic year" is July 1 to June 30, inclusive.  The
starting date of a session shall determine the academic year in which
it is included.
   (b) "Access costs" means living expenses and expenses for
transportation, supplies, and books.
   (c) "Award year" means one academic year, or the equivalent, of
attendance at a qualifying institution.
   (d) "College grade point average" and "community college grade
point average" mean a grade point average calculated on the basis of
all college work completed, except for nontransferable units and
courses not counted in the computation for admission to a California
public institution of higher education that grants a baccalaureate
degree.
   (e) "Commission" means the Student Aid Commission.
   (f) "Enrollment status" means part-time status or full-time
status.
   (1) Part-time, for purposes of Cal Grant eligibility, is defined
as 6 to 11 semester units, inclusive, or the equivalent.
   (2) Full-time, for purposes of Cal Grant eligibility, is defined
as 12 or more semester units or the equivalent.
   (g) "Expected family contribution," with respect to an applicant
shall be determined using the federal methodology pursuant to
subdivision (a) of Section 69506 (as established by Title IV of the
federal Higher Education Act of 1965, as amended (20 U.S.C. Secs.
1070 et seq.)) and applicable rules and regulations adopted by the
commission.
   (h) "High school grade point average" means a grade point average
calculated on a 4.0 scale, using all academic coursework, for the
sophomore year, the summer following the sophomore year, the junior
year, and the summer following the junior year, excluding physical
education, reserve officer training corps (ROTC), and remedial
courses, and computed pursuant to regulations of the commission.
However, for high school graduates who apply after their senior year,
"high school grade point average" includes senior year coursework.
   (i) "Instructional program of not less than one academic year"
means a program of study that results in the award of an associate or
baccalaureate degree or certificate requiring at least 24 semester
units or the equivalent, or that results in eligibility for transfer
from a community college to a baccalaureate degree program.
   (j) "Instructional program of not less than two academic years"
means a program of study that results in the award of an associate or
baccalaureate degree requiring at least 48 semester units or the
equivalent, or that results in eligibility for transfer from a
community college to a baccalaureate degree program.
   (k) "Maximum household income and asset levels" means the
applicable household income and household asset levels for
participants in the Cal Grant Program, as defined and adopted in
regulations by the commission for the 2001-02 academic year, which
shall be set pursuant to the following income and asset ceiling
amounts:


                       CAL GRANT PROGRAM INCOME CEILINGS

            --------------------------------------------------------
            '                            Cal Grant A,              '
            '                              C, and T   Cal Grant B  '
            '------------------------------------------------------'
            '  Dependent and Independent students with dependents* '
            '   Family Size                                        '
            '      Six or more             $74,100      $40,700    '
            '      Five                    $68,700      $37,700    '
            '      Four                    $64,100      $33,700    '
            '      Three                   $59,000      $30,300    '
            '      Two                     $57,600      $26,900    '
            '                                                      '
            '  Independent                                         '
            '      Single, no dependents   $23,500      $23,500    '
            '      Married                 $26,900      $26,900    '
            --------------------------------------------------------
*Applies to independent students with dependents other than a
spouse.



                      CAL GRANT PROGRAM ASSET CEILINGS

            -------------------------------------------------------
            '                            Cal Grant A,              '
            '                              C, and T   Cal Grant B  '
            '------------------------------------------------------'
            '                                                      '
            '  Dependent**                 $49,600      $49,600    '
            '  Independent                 $23,600      $23,600    '
            '------------------------------------------------------'
**Applies to independent students with dependents other than a
spouse.

   The commission shall annually adjust the maximum household income
and asset levels based on the percentage change in the cost of living
within the meaning of paragraph (1) of subdivision (e) of Section 8
of Article XIIIB of the California Constitution.
   (l) "Qualifying institution" means any of the following:
   (1) Any California private or independent postsecondary
educational institution that participates in the Pell Grant program
and in at least two of the following federal campus-based student aid
programs:
   (A) Federal Work-Study.
   (B) Perkins Loan Program.
   (C) Supplemental Educational Opportunity Grant Program.
   (2) Any nonprofit institution headquartered and operating in
California that certifies to the commission that 10 percent of the
institution's operating budget, as demonstrated in an audited
financial statement, is expended for the purposes of institutionally
funded student financial aid in the form of grants, that demonstrates
to the commission that it has the administrative capacity to
administer the funds, that is accredited by the Western Association
of Schools and Colleges, and that meets any other state-required
criteria adopted by regulation, by the commission in consultation
with the Department of Finance.  A regionally accredited institution
that was deemed qualified by the commission to participate in the Cal
Grant Program for the 2000-01 academic year shall retain its
eligibility as long as it maintains its existing accreditation
status.
   (3) Any California public postsecondary educational institution.
   (m) "Satisfactory academic progress" means those criteria required
by applicable federal standards published in Title 34 of the Code of
Federal Regulations.  The commission may adopt regulations defining
"satisfactory academic progress" in a manner that is consistent with
those federal standards.
   69432.8.  The commission may determine that an advance payment is
essential to ensure that funds provided pursuant to this chapter to
assist students to enroll in postsecondary education are available at
the time students enroll.  Upon making that determination, the
commission may, on the basis of institutional academic calendars,
advance, per term to authorized postsecondary educational
institutions, the funds for eligible students who have indicated they
will attend those institutions, less an amount based on historical
claim enrollment attrition information.  Each institution shall
disburse the funds in accordance with the provisions set forth in the
institutional agreement between the commission and the institution.

   69432.9.  (a) A Cal Grant applicant shall submit a complete
official financial aid application pursuant to Section 69433 and
applicable regulations adopted by the commission.
   (b) Financial need shall be determined using the federal financial
need methodology pursuant to subdivision (a) of Section 69506 and
applicable regulations adopted by the commission, and as established
by Title IV of the Federal Higher Education Act of 1965 (20 U.S.C.
Secs. 1070 et seq., as amended).  The calculation of financial need
shall be consistent with the commission's methodology for financial
need for the 2000-01 academic year.
   (1) "Expected family contribution," with respect to an applicant
shall be determined using the federal methodology pursuant to
subdivision (a) of Section 69506 (as established by Title IV of the
federal Higher Education Act of 1965, as amended (20 U.S.C. Secs.
1070 et seq.)) and applicable rules and regulations adopted by the
commission.
   (2) Financial need is defined as the difference between the
student's cost of attendance as determined by the commission and the
expected family contribution.  The calculation of financial need
shall be consistent with the commission's methodology for determining
financial need for the 2000-01 academic year as established by Title
IV of the federal Higher Education Act of 1965, as amended (20
U.S.C. Secs. 1070 et seq.).
   (3) (A) The minimum financial need required for receipt of an
initial Cal Grant A or Cal Grant C award shall be not less than the
maximum annual award value for the applicable institution, plus an
additional one thousand five hundred dollars ($1,500) of financial
need.
   (B) The minimum financial need required for receipt of an initial
Cal Grant B award shall be no less than seven hundred dollars ($700).

   (c) The commission shall require that a grade point average be
submitted for all Cal Grant A and B applicants, except for those
permitted to provide test scores in lieu of a grade point average.
The commission shall require that each report of a grade point
average include a certification, executed under penalty of perjury,
by a school official, that the grade point average reported is
accurately reported.  The certification shall include a statement
that it is subject to review by the commission or its designee.  The
commission shall adopt regulations that establish a grace period for
receipt of the grade point average and any appropriate corrections,
and that set forth the circumstances under which a student may submit
a specified test score designated by the commission, by regulation,
in lieu of submitting a qualifying grade point average.  It is the
intent of the Legislature that high schools and institutions of
higher education certify the grade point averages of their students
in time to meet the application deadlines imposed by this chapter.
   69433.  (a) (1) A Cal Grant Program award shall be based upon the
financial need of the applicant, and shall not exceed the calculated
financial need for any individual applicant.  The minimum level of
financial need of each applicant shall be determined by the
commission pursuant to Section 69432.9.  The commission may provide
renewal awards.
   (2) A student attending a nonpublic institution shall receive a
renewal award for tuition or fees, or both, in an amount not to
exceed the maximum allowable award amount that was in effect in the
year in which the student first received a new award.
   (b) A Cal Grant award authorized pursuant to this chapter shall be
defined as a full-time equivalent grant.  An award to a part-time
student shall be a fraction of a full-time grant, as determined by
the commission.
   (c) (1) The commission shall prescribe the use of standardized
student financial aid applications for California.  These
applications shall be simple in nature, and collect common data
elements required by the federal government and those elements needed
to meet the objectives of state-funded and institutional financial
aid programs.
   (2) The applications prescribed in paragraph (1) shall be utilized
for the Cal Grant Program, all other programs funded by the state or
a public institution of postsecondary education (except for the
Financial Assistance Program of the Board of Governors of the
California Community Colleges authorized by Chapter 1118 of the
Statutes of 1987, for which a simplified application designed for
that sole purpose may be used), and all federal programs administered
by a public postsecondary education institution.
   (3) Supplemental application information may be utilized if the
information is essential to accomplishing the objectives of
individual programs.  All supplemental application information used
for the purposes of commission-administered programs shall be subject
to approval by the commission, and applications shall be identical
for programs with similar objectives, as determined by the
commission.
   (4) Public postsecondary institutions are encouraged to use, but
may decide whether to use, the standard applications for funds
provided by private donors.
   (5) The Legislature finds and declares that it is in the best
interest of students that all postsecondary education institutions in
California participating in federal and state-funded financial aid
programs accept the standard applications prescribed by the
commission.
   (d) Nothing in this chapter shall prevent an individual public
postsecondary institution from processing, with its own staff and
fiscal resources, the standard financial aid applications specified
in subdivision (c) for student aid programs for which it has legal
responsibility.
   (e) The commission may enter into contracts with a public agency
or a private entity to improve the processing and distribution of
grants, fellowships, and loans through the use of electronic networks
and unified data bases.
   69433.5.  (a) Only a resident of California, as determined by the
commission pursuant to Part 41 (commencing with Section 68000), is
eligible for an initial Cal Grant award.  The recipient shall remain
eligible for award renewal only if he or she is a California
resident, in attendance, and making satisfactory academic progress at
a qualifying institution, as determined by the commission.
   (b) A part-time student shall not be discriminated against in the
selection of Cal Grant Program award recipients, and an award to a
part-time student shall be approximately proportional to the time the
student spends in the instructional program, as determined by the
commission.  A first-time Cal Grant Program award recipient who is a
part-time student shall be eligible for a full-time renewal award if
he or she becomes a full-time student.
   (c) Cal Grant Program awards shall be awarded without regard to
race, religion, creed, sex, or age.
   (d) No applicant shall receive more than one type of Cal Grant
Program award concurrently.  Except as provided in Section 69440, no
applicant shall:
   (1) Receive one or a combination of Cal Grant Program awards in
excess of the amount equivalent to the award level for a total of
four years of full-time attendance in an undergraduate program,
except as provided in Section 69433.6.
   (2) Have obtained a baccalaureate degree prior to receiving a Cal
Grant Program award, except as provided in Section 69440.
   (e) A Cal Grant Program award, except as provided in Section
69440, may only be used for educational expenses of a program of
study leading directly to an undergraduate degree or certificate, or
for expenses of undergraduate coursework in a program of study
leading directly to a first professional degree, but for which no
baccalaureate degree is awarded.
   (f) Commencing in 1999, the commission shall, for students who
accelerate college attendance, increase the amount of award
proportional to the period of additional attendance resulting from
attendance in classes that fulfill requirements or electives for
graduation during summer terms, sessions, or quarters.  In the
aggregate, the total amount a student may receive in a four-year
period may not be increased as a result of accelerating his or her
progress to a degree by attending summer terms, sessions, or
quarters.
   (g) The commission shall notify Cal Grant award recipients of the
availability of funding for the summer term, session, or quarter
through prominent notice in financial aid award letters, materials,
guides, electronic information, and other means that may include, but
not necessarily be limited to, surveys, newspaper articles, or
attachments to communications from the commission and any other
published documents.
   (h) The commission may require, by the adoption of rules and
regulations, the production of reports, accounting, documents, or
other necessary statements from the award recipient and the college
or university of attendance pertaining to the use or application of
the award.
   (i) A Cal Grant Program award may be utilized only at a qualifying
institution.
   69433.6.  (a) Cal Grant A awards and Cal Grant B awards may be
renewed for a total of the equivalent of four years of full-time
attendance in an undergraduate program provided that financial need
continues to exist.  Commencing with the 2001-02 academic year, the
total number of years of eligibility for grants pursuant to this
section shall be based on the student's educational level in his or
her course of study as designated by the institution of attendance
when the recipient initially receives payment for a grant.
   (b) For a student enrolled in an institutionally prescribed
five-year undergraduate program, Cal Grant A awards and Cal Grant B
awards may be renewed for a total of five years of full-time
attendance, provided that financial need continues to exist.
   (c) (1) A Cal Grant Program award recipient who has completed a
baccalaureate degree, and who has been admitted to and is enrolled in
a program of professional teacher preparation at an institution
approved by the California
    Commission on Teacher Credentialing is eligible for, but not
entitled to, renewal of a Cal Grant Program award for an additional
year of full-time attendance, if financial need continues to exist.
   (2) Payment for an additional year is limited to only those
courses required for an initial teaching authorization.  An award
made under this subdivision may not be used for other courses.
   (d) A student's Cal Grant renewal eligibility shall not have
lapsed more than 15 months prior to the payment of an award for
purposes of this section.
   69433.7.  The commission shall adopt regulations necessary to
implement this chapter.  Notwithstanding any other provision of law,
the commission may adopt emergency regulations pursuant to Section
11346.1 of the Government Code in order to ensure that the program
enacted by this chapter may function in its first academic year.
   69433.8.  An award under this chapter does not guarantee admission
to an institution of higher education or admission to a specific
campus or program.
   69433.9.  To be eligible to receive a Cal Grant award under this
chapter, a student shall be all of the following:
   (a) A citizen of the United States, or an eligible noncitizen, as
defined for purposes of financial aid programs under Title IV of the
federal Higher Education Act of 1965 (20 U.S.C. Secs. 1070 et seq.,
as from time to time amended).
   (b) In compliance with all applicable Selective Service
registration requirements.
   (c) Not incarcerated.
   (d) Not in default on any student loan within the meaning of
Section 69507.5.
   (e) For purposes of Article 2 (commencing with Section 69434),
Article 3 (commencing with Section 69435), and Article 4 (commencing
with Section 69436), at the time of high school graduation or its
equivalent, be a resident of California.

      Article 2.  Cal Grant A Entitlement Program

   69434.  (a) Commencing with the 2001-02 academic year, and each
academic year thereafter, a Cal Grant A award shall be used only for
tuition or student fees, or both, in a for-credit instructional
program with a length of not less than two academic years.  Each
student who meets the Cal Grant A qualifications as set forth in this
article shall be guaranteed an award.  The amount of any individual
award is dependent on the cost of tuition or fees, or both, at the
qualifying institution at which the student is enrolled.  For each
applicant, the award amount shall not exceed the calculated financial
need.
   (b) Pursuant to Section 66021.2, any California resident is
entitled to a Cal Grant A award, and the commission shall allocate
that award, if all of the following criteria are met:
   (1) The student has submitted, pursuant to Section 69432.9, a
complete financial aid application, submitted or postmarked no later
than March 2 of the academic year of high school graduation or its
equivalent for the award year immediately following the academic year
of high school graduation or its equivalent, or no later than March
2 of the academic year following high school graduation or its
equivalent for the second award year following the year of high
school graduation or its equivalent.
   (2) The student demonstrates financial need pursuant to Section
69433.
   (3) The student attains a high school grade point average of at
least 3.0 on a four-point scale.
   (4) The student's household has an income and asset level that
does not exceed the level for Cal Grant A recipients set forth in
Section 69432.7.
   (5) The student is pursuing an undergraduate academic program of
not less than two academic years that is offered by a qualifying
institution.
   (6) The student is enrolled at least part-time.
   (7) The student meets the general Cal Grant eligibility
requirements set forth in Article 1 (commencing with Section 69430).

   (c) A student who meets the Cal Grant A Entitlement Program
criteria specified in this article shall receive a Cal Grant A award
for tuition or fees, or both, pursuant to Section 66021.2.
   69434.5.  An individual selected for a Cal Grant A award who
enrolls in a California community college may elect to have the award
held in reserve for him or her for a period not to exceed two
academic years, except that the commission may extend the period in
which his or her award may be held in reserve for up to three
academic years if, in the commission's judgment, the rate of academic
progress has been as rapid as could be expected for the personal and
financial conditions that the student has encountered.  The
commission shall, in this case, hold the award in reserve for the
additional year.  Upon receipt of a request to transfer the award to
a tuition or fee charging qualifying institution, the individual will
be eligible to receive the Cal Grant A award previously held in
reserve if, at the time of the request, he or she meets all of the
requirements of this article.  Upon receipt of the request, the
commission shall reassess the financial need of the award recipient.
The commission may prescribe the forms and procedures to be utilized
for the purposes of this section.  A recipient's years of
eligibility for payment of benefits shall be based upon his or her
grade level at the time the award is transferred to the tuition or
fee charging qualifying institution.

      Article 3.  Cal Grant B Entitlement Program

   69435.  (a) (1) Commencing with the 2001-02 academic year, and
each academic year thereafter, a Cal Grant B award shall be used only
for tuition, student fees, and access costs in a for-credit
instructional program that is not less than one academic year in
length.
   (2) The commission shall award access grants in a student's first
academic year.  In subsequent years, the award shall include an
additional amount to pay tuition or fees, or both, to attend college
at a public or private four-year college or university or other
qualifying institution for all Cal Grant B awards pursuant to
paragraph (2) of subdivision (b) of Section 66021.2.  In no event
shall the total award in any year exceed the applicant's calculated
financial need.
   (3) Not more than 2 percent of new Cal Grant B recipients
enrolling for the first time in an institution of postsecondary
education shall be eligible for payments for tuition or fees, or
both, in their first academic year of attendance.  The commission
shall adopt regulations specifying the criteria used to determine
which applicants, if any, receive both tuition and fees plus the
access grant in the first year of enrollment.  Priority shall be
given to students with the lowest expected family contribution
pursuant to Section 69432.7 and the highest level of academic merit.

   (b) An award for access costs under this article shall be in an
annual amount not to exceed one thousand five hundred fifty-one
dollars ($1,551).  This amount may be adjusted in the annual Budget
Act.
   69435.3.  (a) Any California resident is entitled to receive a Cal
Grant B award, and the commission shall allocate that award pursuant
to Section 66021.2, if all of the following criteria are met:
   (1) The student has submitted, pursuant to Section 69432.9, a
complete financial aid application, submitted or postmarked no later
than March 2 of the academic year of high school graduation or its
equivalent for the award year immediately following the academic year
of high school graduation or its equivalent, or no later than March
2 of the academic year following high school graduation or its
equivalent for the second award year following the year of high
school graduation or its equivalent.
   (2) The student demonstrates financial need pursuant to Section
69433.
   (3) The student attains a high school grade point average of at
least 2.0 on a four-point scale.
   (4) The student's household has an income and asset level that
does not exceed the level for Cal Grant B recipients as set forth in
Section 69432.7.
   (5) The student is pursuing an undergraduate academic program of
not less than one academic year that is offered by a qualifying
institution.
   (6) The student is enrolled at least part-time.
   (7) The student meets the general Cal Grant eligibility
requirements set forth in Article 1 (commencing with Section 69430).

   (b) A student whose household income does not exceed the maximum
household income and asset levels, as set forth in Section 69432.7,
for a Cal Grant B award shall receive access costs and tuition and
fees pursuant to Section 66021.2.

      Article 4.  California Community College Transfer Cal Grant
Entitlement Program

   69436.  (a) Commencing with the 2001-02 academic year, and each
academic year thereafter, a student who was not awarded a Cal Grant A
or B award pursuant to Article 2 (commencing with Section 69434) or
Article 3 (commencing with Section 69435) at the time of his or her
high school graduation but, at the time of transfer from a California
community college to a qualifying baccalaureate program, meets all
of the criteria set forth in subdivision (b), shall be entitled to a
Cal Grant A or B award.
   (b) Any California resident transferring from a California
community college to a qualifying institution that offers a
baccalaureate degree is entitled to receive, and the commission shall
award, a Cal Grant A or B depending on the eligibility determined
pursuant to subdivision (c), if all of the following criteria are
met:
   (1) A complete official financial aid application has been
submitted or postmarked pursuant to Section 69432.9, no later than
the March 2 of the year immediately preceding the award year.
   (2) The student demonstrates financial need pursuant to Section
69433.
   (3) The student has earned a community college grade point average
of at least 2.4 on a 4.0 scale and is eligible to transfer to a
qualifying institution that offers a baccalaureate degree.
   (4) The student's household has an income and asset level not
exceeding the limits set forth in Section 69432.7.
   (5) The student is pursuing a baccalaureate degree that is offered
by a qualifying institution.
   (6) He or she is enrolled at least part-time.
   (7) The student meets the general Cal Grant eligibility
requirements set forth in Article 1 (commencing with Section 69430).

   (8) The student meets the federal definition of a dependent
student, as set forth in Section 152 of Title 26 of the United States
Code, with the exception of:
   (A) A student who is an orphan or a ward of the court and who will
not be 24 years old or older by December 31 of the award year.
   (B) A student who is a veteran of the United States Armed Forces
and who will not be 24 years old or older by December 31 of the award
year.
   (C) A student who is a married person and who will not be 24 years
old or older by December 31 of the award year.
   (D) A student who will not be 24 years old or older by December 31
of the award year and who has dependents other than a spouse.
   (E) A student who will not be 24 years old or older by December 31
of the award year and for whom a financial aid administrator makes
documented determination of independence by reason of other unusual
circumstances.
   (9) A student who graduated from a California high school or its
equivalent during or after the 2001-02 academic year.
   (c) The amount and type of the award pursuant to this article
shall be determined as follows:
   (1) For applicants with income and assets at or under the Cal
Grant A limits, the award amount shall be the amount established
pursuant to Article 2 (commencing with Section 69434).
   (2) For applicants with income and assets at or under the Cal
Grant B limits, the award amount shall be the amount established
pursuant to Article 3 (commencing with Section 69435).
   69436.5.  A participating qualifying institution shall report to
the commission annually as to the number of students determined to be
independent pursuant to subparagraph (E) of paragraph (8) of
subdivision (b) of Section 69436 and the reasons therefor.

      Article 5.  Competitive Cal Grant A and B Awards

   69437.  (a) Commencing with the 2001-02 academic year, and each
academic year thereafter, there shall be established the Competitive
Cal Grant A and B award program for students who did not receive a
Cal Grant A or B entitlement award pursuant to Article 2 (commencing
with Section 69434), Article 3 (commencing with Section 69435), or
Article 4 (commencing with Section 69436).  Awards made under this
section are not entitlements.  The submission of an application by a
student under this section shall not entitle that student to an
award.  The selection of students under this article shall be
determined pursuant to subdivision (c) and other relevant criteria
established by the commission.
   (b) A total of 22,500 Cal Grant A and B awards shall be granted
annually under this article on a competitive basis for applicants who
meet the general eligibility criteria established in Article 1
(commencing with Section 69430) and the priorities established by the
commission pursuant to subdivision (c).
   (1) Fifty percent of the awards referenced in this subdivision are
available to all students, including California community college
students, who meet the financial need and academic requirements
established pursuant to this article.  A student enrolling at a
qualifying baccalaureate degree granting institution shall apply by
the March 2 deadline.  A California community college student is
eligible to apply at the March 2 or the September 2 deadline.
   (2) Fifty percent of the awards referenced in this subdivision are
reserved for students who will be enrolled at a California community
college.  The commission shall establish a second application
deadline of September 2 for community college students to apply for
these awards effective with the fall term or semester of the 2001-02
academic year.
   (3) If any awards are not distributed pursuant to paragraphs (1)
and (2) upon initial allocation of the awards under this article, the
commission shall make awards to as many eligible students as
possible, beginning with the students with the lowest expected family
contribution and highest academic merit, consistent with the
criteria adopted by the commission pursuant to subdivision (c), as
practicable without exceeding an annual cumulative total of 22,500
awards.
   (c) (1) On or before February 1, 2001, acting pursuant to a public
hearing process that is consistent with the Bagley-Keene Open
Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1
of Part 1 of Division 3 of Title 2 of the Government Code), the
commission shall establish selection criteria for Cal Grant A and B
awards under the competitive program that give special consideration
to disadvantaged students, taking into consideration those financial,
educational, cultural, language, home, community, environmental, and
other conditions that hamper a student's access to, and ability to
persist in, postsecondary education programs.
   (2) Additional consideration shall be given to each of the
following:
   (A) Students who graduated from high school or its equivalent
prior to the 2000-01 academic year.  This subparagraph shall not be
applicable after the 2004-05 academic year.
   (B) Students pursuing Cal Grant B awards who reestablish their
grade point averages.
   (C) Students who did not receive awards pursuant to Article 2
(commencing with Section 69434), Article 3 (commencing with Section
69435), or Article 4 (commencing with Section 69436).
   (d) All other students who meet the eligibility requirements
pursuant to Article 1 (commencing with Section 69430) are eligible to
compete for an award pursuant to this article.
   69437.3.  (a) The commission shall utilize the standardized
student financial aid application described in Section 69432.9.
   (b) An official financial aid application shall be submitted
pursuant to Section 69432.9, submitted or postmarked no later than
March 2, or September 2 for students enrolled at a community college.

   (c) A student shall be enrolled at least part-time.
   69437.5.  Cal Grant A and B awards shall be used only for the
purposes set forth in Article 2 (commencing with Section 69434) and
Article 3 (commencing with Section 69435), respectively.
   69437.6.  (a) An applicant competing for an award under this
article shall meet all the requirements of Article 1 (commencing with
Section 69430).
   (b) To compete for a competitive Cal Grant A Award, an applicant
shall, at a minimum, meet all of the requirements of Article 2
(commencing with Section 69434), with the exception of paragraph (1)
of subdivision (b) of Section 69434.
   (c) To compete for a competitive Cal Grant B Award, an applicant
shall, at a minimum, meet all of the requirements of Article 3
(commencing with Section 69435).  However, in lieu of meeting the
grade point average requirements of paragraph (3) of subdivision (a)
of Section 69435.3, a student may reestablish his or her grade point
average by completing at least 16 cumulative units of credit for
academic coursework at an accredited California community college, as
defined by the commission, by regulation, with at least a 2.0
community college grade point average.
   (d) To compete for a competitive California Community College
Transfer Cal Grant Award, an applicant shall, at a minimum, meet the
requirements of Article 4 (commencing with Section 69436), with the
exception of paragraph (8) of subdivision (b) of Section 69436.
   (e) All other competitors shall, at a minimum, comply with all of
the requirements of subdivision (b) of Section 69432.9.
   (f) An individual selected for a Cal Grant A award who enrolls in
a California community college may elect to have the award held in
reserve for him or her for a period not to exceed two academic years,
except that the commission may extend the period in which his or her
award may be held in reserve for up to three academic years if, in
the commission's judgment, the rate of academic progress has been as
rapid as could be expected for the personal and financial conditions
that the student has encountered.  The commission shall, in this
case, hold the award in reserve for the additional year.  Upon
receipt of a request to transfer the award to a tuition or fee
charging qualifying institution, the individual will be eligible to
receive the Cal Grant A award previously held in reserve if, at the
time of the request, he or she meets all of the requirements of this
article.  Upon receipt of the request the commission shall reassess
the financial need of the award recipient.  The commission may
prescribe the forms and procedures to be utilized for the purposes of
this section.  A recipient's years of eligibility for payment of
benefits shall be based upon his or her grade level at the time the
award is transferred to the tuition or fee charging qualifying
institution.  Any award so held in reserve shall only be counted once
toward the 22,500 awards authorized by this article.
   69437.7.  After two award cycles, the commission shall review the
competitive grant program and its priorities to gain a better
understanding of early participation patterns and to determine the
initial level of program effectiveness.  The commission shall report
these findings to the Legislature and the Governor by December 31,
2003, and each year thereafter.

      Article 6.  Cal Grant C Program

   69439.  (a) Commencing with the 2001-02 academic year, and each
academic year thereafter, a Cal Grant C award shall be utilized only
for occupational or technical training in a course of not less than
four months.  There shall be the same number of Cal Grant C awards
each year as were made in the 2000-01 fiscal year.  The maximum award
amount and the total amount of funding shall be determined each year
in the annual Budget Act.
   (b) "Occupational or technical training" means that phase of
education coming after the completion of a secondary school program
and leading toward recognized occupational goals approved by the
commission.
   (c) The commission may use criteria it deems appropriate in
selecting students with occupational talents to receive grants for
occupational or technical training.
   (d) The Cal Grant C recipients shall be eligible for renewal of
their grants until they have completed their occupational or
technical training in conformance with terms prescribed by the
commission.  In no case shall the grants exceed two calendar years.
   (e) Cal Grant C awards shall be for institutional fees, charges,
and other costs including tuition, plus training-related costs, such
as special clothing, local transportation, required tools, equipment,
supplies, and books.  In determining the amount of grants and
training-related costs, the commission shall take into account other
state and federal programs available to the applicant.
   (f) Cal Grant C awards shall be awarded in areas of occupational
or technical training as determined by the commission after
consultation with appropriate state and federal agencies.

      Article 7.  Cal Grant T Program

   69440.  (a) Commencing with the 2001-02 academic year, and each
academic year thereafter, Cal Grant T awards shall be used only for
tuition and student fees for a maximum of one academic year of
full-time attendance in a program of professional preparation that
has been approved by the California Commission on Teacher
Credentialing.  There shall be a minimum of 3,000 new Cal Grant T
awards each year.  The maximum award amount, and the total amount of
funding, shall be determined each year in the annual Budget Act.  As
a condition of receiving a Cal Grant T award, a recipient shall teach
for one year in a low-performing school, as defined in subdivision
(c) of Section 44765, for each two thousand dollar ($2,000) incentive
provided through the Cal Grant T Program, for a period not to exceed
four years.  Any recipient who fails to meet his or her teaching
obligation shall repay the Cal Grant T award.
   (b) The commission shall allocate Cal Grant T awards using
academic criteria or criteria related to past performance similar to
that used in awarding Cal Grant A awards for the 2000-01 academic
year.
  SEC. 5.  Section 69514.5 is added to the Education Code, to read:
   69514.5.  (a) The Community College Student Financial Aid Outreach
Program is hereby established.  The commission shall, in
consultation with the office of the Chancellor of the California
Community Colleges, develop and administer this program for the
purpose of providing financial aid training to high school and
community college counselors and advisors who work with students
planning to attend or attending a community college.  This training
shall also address the specific needs of all of the following:
   (1) Community college students intending to transfer to a
four-year institution of higher education.
   (2) Foster youth.
   (3) Students with disabilities.
   (b) The program shall provide specialized information on financial
aid opportunities available to community college students, with a
particular focus on students who plan to transfer to a four-year
college or university.  The commission shall work in collaboration
with the Chancellor of the California Community Colleges and other
segments of higher education to develop and distribute this
specialized information to assist community college students who are
planning to transfer to a four-year college or university.  Each
year, the program shall offer financial aid workshops for high school
and community college counselors, targeted for students planning to
attend a community college or to transfer from a community college to
a four-year institution of higher education.  The program shall
assist community college counselors in conducting student and family
workshops that provide general information about financial aid and
technical assistance in completing financial aid forms.
   (c) The program shall concentrate its efforts on high schools and
community colleges that are located in geographic areas that have a
high percentage of low-income families.
  SEC. 6.  Section 69547.5 is added to the Education Code, to read:
   69547.5.  Commencing on January 1, 2001, this article shall be
applicable only to students who have received an award pursuant to
this article on or before December 31, 2000.
  SEC. 7.  Section 69547.9 is added to the Education Code, to read:
   69547.9.  This article shall remain in effect only until January
1, 2010, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2010, deletes or extends
that date.
  SEC. 8.  The Student Aid Commission shall annually report to the
Legislature and the Governor on the
Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program from its
inception on both of the following:
   (a) The number of Cal Grant applicants and new and continuing
recipients each year.  This data shall include at a minimum the
following information about recipients:  educational level, grade
point average, segment of attendance, number of community college
transfer students.
   (b) A longitudinal component that measures student persistence and
graduation rates over time.
  SEC. 9.  Notwithstanding any other provision of law, the Director
of Finance may authorize the augmentation, from the Special Fund for
Economic Uncertainties established pursuant to Section 16418 of the
Government Code, of the annual amount appropriated for the purpose of
making Cal Grant awards pursuant to Chapter 1.7 (commencing with
Section 69430) of Part 42 of the Education Code, as necessary to
fully fund the number of awards required to be granted by that
chapter.  No augmentation may be authorized under this section sooner
than 30 days after the Director of Finance provides written notice
of the proposed augmentation to the Chairperson of the Joint
Legislative Budget Committee and the chairpersons of the committees
in each house that consider appropriations, nor sooner than whatever
lesser time those persons, or their designees, may in each instance
determine.
  SEC. 10.  (a) The sum of one million five hundred thousand dollars
($1,500,000) is hereby appropriated from the General Fund to the
Student Aid Commission for expenditure, without regard to fiscal
year, for support costs related to the administration of this act.
   (b) The expenditure of the funds appropriated in subdivision (a)
is subject to approval of a work plan by the Department of Finance,
once 30-day written notification has been given to the Chairperson of
the Joint Legislative Budget Committee, or his or her designee.
                                                             (c)
Notwithstanding any other provision of law, any deficiency request
submitted by the Student Aid Commission and recommended by the
Director of Finance, pursuant to Section 27.00 of the Budget Act of
2000, for the purposes of implementing this act, shall be considered
to be for unanticipated expenses incurred in the operation of
existing programs, and shall be subject to any other pertinent
provisions of Section 27.00 of the Budget Act of 2000.
   (d) In order to ensure proper planning for administration of this
act, it is the intent of the Legislature that the Department of
Finance consider a Spring Finance Letter from the Student Aid
Commission for inclusion in the Budget Bill for the 2001-02 fiscal
year for the purposes of requesting funds to comply with this act in
the 2001-02 fiscal year.
   (e) No funds provided pursuant to this section shall be expended
for information technology projects prior to approval by the
Department of Finance and the Department of Information Technology of
a Feasibility Study Report or a Special Project Report, as
applicable.
  SEC. 11.  This act is an urgency statute necessary for the
immediate preservation of the public peace, health, or safety within
the meaning of Article IV of the Constitution and shall go into
immediate effect.  The facts constituting the necessity are:
   In order for this act to take effect in time to apply to high
school seniors who graduate in the 2000-01 academic year, it is
necessary that it take effect immediately.
